Kesla pivots towards defence as civilian unit put up for sale

The Finnish manufacturer of cranes and tractors, Kesla, is increasing its focus on defence.

As part of this shift, the company has decided to initiate a divestment process for its Tractor Equipment product group, while prioritising the development of its defence business.

Kesla currently operates across four product groups: tractor equipment, logging equipment, stationary and industrial cranes, and Kesla Defence.

- Ensuring that Kesla continues to offer a competitive portfolio of products and services that create value for customers is at the core of everything we do, says chief executive Pasi Nieminen in a press release.

- We will continue our structural assessment process and, in line with our strategy, focus on the product groups where we have the clearest competitive advantage. Our outlook in the defence industry is strong, and we want to ensure sufficient resources and focus, particularly on developing our Kesla Defence product group, he adds.

Six decades

Kesla Defence was established to address demand for defence and protection capabilities, the company says. Building on six decades of operating in challenging forest environments, the unit develops and manufactures military engineering solutions in close collaboration with the Finnish Defence Forces.

Following a strategic review, management concluded that divesting the Tractor Equipment product group, which focuses on tractor-mounted civilian applications, is the most viable option from an overall perspective, Nieminen says.

The decision forms part of Kesla’s broader business recovery and structural assessment process, announced on 1 December 2025. Kesla expects the process to be concluded in 2026.

In 2025, the group’s turnover was  EUR 34,4 million, of which 53 percent was attributable to export operations.

In march, Kesla Defence received an order worth approximately EUR 17 million from the defence forces of a NATO country. At the customer’s request, the purchasing country, the number of units, deployment locations and intended use will remain confidential.